stock and 2000 shares of 12 par common stock Cheshire paid 2

stock and 2,000 shares of $12 par common stock Cheshire paid $2.000in 23 OA $1,744 O B. $960 on eT O D. $1,488 ter Re test. Then, go to the Study Plan for your 2 od a

Solution

Preferred Dividends for one year = 80 shares*$80 par*4% = $256

Preferred Dividends in arrear for one year = 80 shares*$80 par*4% = $256

Total Preferred dividend paid in current year = $256+$256 = $512

Total cash dividends paid = $2,000

Dividends paid to common stockholders = Total cash dividends - Total preferred dividends

= $2,000 - $512 = $1,488

Therefore the correct option is D) $1,488.